You are here

Fundraising factsheet five: how do you ask for funds?

How do you ask for funds?

Wise people realise that fundraising is not really about raising money. It is about building relationships. Fundraising is sometimes humorously called a ‘contact sport‘.

It is a process. And if the whole process is done well, it is almost a case of the potential giver volunteering their support because they have been so convinced of the worthiness of what you are doing. That is, the request for money comes as no surprise and the givers have been given ample opportunity to learn about your case and understand its importance. In many instances, they will have decided to give, before they are even asked. The amateur will waltz in with a letter to a large company and expect a big donation on the spot. In reality, few people will part with their money without a lot of prior information and involvement. You probably would not, so why expect others to do so?

This asking process could be described as having seven key steps.

Identification

Having defined your constituencies, those with a linkage to your cause, you move to the individual level to identify your potential donors.

Qualification

This identification step is followed by qualification, working out whether those people you have identified will and can give. This involves research from a range of sources - for instance, watching the paper, finding out backgrounds of potential givers to see what linkages they may have to your cause. You read an article that says a business person used to be part of an amateur opera company and you learn of a linkage for your arts organisation. You see an article on a prominent person in your district and learn that have long supported youth employment. Perhaps they may like to support your efforts here too. It goes without saying that any such research should be conducted tastefully and ethically.

Strategy

Based on your research into the individuals who may give, you will have selected an appropriate strategy for raising funds. Strategy can operate at the individual level, too, deciding the proper person in your fold to introduce your potential giver to your cause. Remember the old chestnut that people do not give to causes. People give to people with causes. As part of your strategy you will also need to decide what amount to ask for. Fundraising is often said to be the right person asking the right supporter for the right amount for the right project in the right way.

Cultivation

Build the relationship. Let your potential donors come to understand the cause and its significance as you do. Send information, invite them to functions, involve them on committees, ask for their opinions to improve your work.

The actual asking

The main reason that people do not give is mighty simple - they have not been asked! Fundraising according to some is like milking a cow. It is pretty difficult to milk a cow by post or telephone. There is a ladder of effectiveness in ways to ask for money. The rungs are logical if you put yourself in the place of the giver and think how you would like to be approached for a gift. The most successful asking usually comes from a personal visit by a team of two, one of whom is a peer or contact of the donor. The least effective is from an impersonal letter. In between are the personal visit by one person, the personal letter with a telephone follow-up, the personal letter, and the personal telephone call with a letter follow-up.

It is not easy to ask for money. Most of us will have some reservations about doing this. It is worthwhile repeating that you are not asking for something for yourself. It is for your cause, for your community. The donor looks on you as an extension of the values of your organisation.

There are definite topics you must cover in your conversation, beyond the usual opening stages and establishing rapport. Talking about your own commitment to the cause (remembering that you will already have pledged your money) encourages by example. You will be asking them to join you in filling a community need. You will also need to mention your asking figure. American philanthropist John D. Rockefeller jun. gave some valuable advice on phrasing a request for funds, saying "I do not like to have anyone tell me what it is my duty to give. There is just one man who is going to decide that question - who has the responsibility of deciding it - and that is myself." But I do like a man to say to me, "We are trying to raise $4 million and are hoping you are desirous of giving (blank) dollars. If you can see your way clear to do so, it will be an enormous help and encouragement. You may have it in mind to give more; if so we shall be glad. On the other hand, you may feel you cannot give as much ... if that is the case, we shall understand."

Gifts can be made in many forms, not just cash. Some people sign over shares, works of art, deeds to property or gifts in kind from their company. You may also need to talk through the best mode of giving - a certain amount over three years, title to an asset and so on. Although you have spent much time in cultivating people’s interest in the cause, they may still need to think this through, talk to their accountant, their spouse and so on, especially if you are seeking a big gift. Be sure to make an appointment for a second visit if this is the situation.

Follow-up

Once you have a pledge for funds, the process may seem to have ended. It has not. In talking to people about their donations, you will have done a lot of listening and learned much about why they care about your cause. This will guide you in deciding the type of information donors would like to receive about what their funds are achieving. Also ask the donor what they would like most by way of feedback.

Think of a donation as an investment. It is truly your donor’s investment in the future of your organisation and its goals. As with any other investment, people will want a return and some idea on how their funds are performing. Apart from the obvious thankyou letter to your donors, think of ways you can let them know what their kindness is producing. How much closer are you getting to fulfilling your mission? How have they made a difference? This may take the form of an update letter, a newsletter or a personal call or telephone conversation. The old-fashioned word for this is stewardship. Some wise fundraiser once said that if you haven’t thanked a donor in seven different ways, you are not doing your job.

Renew the gift

If yours is an ongoing program, you will probably be speaking to that donor again in the future. A good way to measure your success is by the number of donors who choose to renew and perhaps upgrade their gift the next time they are approached. This attests to your stewardship.

A new Australian Consumer Law and Fundraising Guide has been released to support not-for-profits on how the Australian Consumer Law (ACL) applies to their organisations. The State and Territory regulators along with the Australian Competition and Consumer Commission released the 'Guide to...

We have launched a brand new course on the Community Door eTraining website which provides an introduction to the social service sector in Queensland for managers and organisations new to the sector. It is free for anyone to access. It features a profile of the sector in Queensland, insights into...

Not-for-profit Law has updated its guide to 'The laws of advertising and your community organisation'. The resource provides practical tips to help organisations comply with the laws of advertising and marketing in Australia. Importantly, these laws apply to many fundraising activities of charities...

Perpetual distributes more than $80 million annually to non-profit organisations on behalf of charitable trusts and endowments. Non-profit organisations can apply for funding through their annual granting program – the IMPACT Philanthropy Application Program . Organisations can apply for up to $200...

Wesley Mission Queensland’s Campaign for Change is looking for the state’s best and brightest innovators. Campaign for Change is a chance for you to make your bright ideas a reality and to make a real difference in your local community. This year Wesley Mission Queensland, with the support of the...

Treasurer Curtis Pitt has outlined three shortlisted proponents seeking to deliver innovative services under the state government’s Social Benefit Bonds program . Mr Pitt said there had been strong interest in the pilot Social Benefit Bonds initiative that will involve investors, the social...

Google believes technology can make a better world, faster. The Google Impact Challenge supports non-profit innovators using technology to tackle the world's biggest social challenges. Google will award $4.5 million across 10 Australian organisations to help bring their ideas to life. Four winning...

The Federal Department of Social Services recently commissioned a research report to better understand volunteering and giving within culturally and linguistically diverse (CALD) and Indigenous communities. The research provides some insights and case stories, highlighting the valuable contribution...

In 2016, The Smith Family received important funding from the Queensland Government which has enabled it to expand its existing Learning for Life Tertiary Scholarship Scheme and create the Care2Achieve Scholarship for Young Women Leaving Care . The Care2Achieve Scholarship is for young women moving...

The Department of Social Services has commissioned research aimed at improving the knowledge base about giving and volunteering patterns and trends to support evidence-based policy development. The research aims to better understand volunteering and giving within culturally and linguistically...

Pages

Are you looking for support in Queensland, or trying to find a service that meets your needs? Now you can search oneplace , the service directory hosted by the Queensland Family and Child Commission. oneplace is an easily accessible directory of community services to help Queensland families to get...

Social Enterprise Finance Australia (SEFA) has been established to provide tailored finance to social enterprises on commercial terms together with targeted business advice and support. Fundamental to this is a commitment to helping clients build their capacity to manage debt and become financially...

Foresters Community Finance is a non-profit organisation that has been delivering community finance and social investment products in Australia for the past 20 years. It is a Community Development Finance Institution (CDFI). CDFI’s are socially focused organisations that use community finance and...

Not-for-profit Law's guide to 'The laws of advertising and your community organisation' provides practical tips to help organisations comply with the laws of advertising and marketing in Australia. Importantly, these laws apply to many fundraising activities of charities and not-for-profits. The...

In the first reading of the 2015 Queensland Budget Speech on 14 July 2015, Treasurer Pitt announced that the Queensland Government will pilot 3 social benefit bonds aimed at sourcing funds from the private sector to finance the achievement of quantifiable social outcomes in the community. The pilot...

The Community Resource Handbooks were launched by Volunteering Queensland on 12 May 2015. They consolidate the knowledge gained through Volunteering Queensland's community leadership work with more than 2,000 community groups over the past fifteen years. The handbooks are aimed at small to medium...

An inaugural benchmarking survey draws together insights from over 100 survey respondents on topics such as governance, strategy, fundraising, risk management and the use of volunteer and professional resources. The survey results highlight that many not-for-profit organisations rely heavily on...

The Community Financial Centre has been established by Our Community to give not-for-profit organisations of all types and sizes access to tools and resources to help improve their financial management, and better and more cost effective banking services. The site covers managing money,...

Based on more than 20 years of experience and 25,000+ hours spent utilising mobile and social media, Mobile for Good: A How-To Fundraising Guide for Nonprofits is a comprehensive 256-page book packed with more than 500 best practices. Written on the premise that all communications and fundraising...

All special fund-raising events are different. Each have their own special set of circumstances and requirements. ourcommunity.com.au's event management team has pooled their many years of experience to create a fund-raising event checklist to help you get started on your planning journey. This...

The Tasmanian Government together with Regional Development Australia and the Tasmanian Early Years Foundation have published a useful guide on the fundamentals of grant writing . Grants enable organisations businesses to: • effect change • build community capacity • purchase things for your...

In March 2014, QCOSS produced the Rethinking Resources: Case Studies of Financial Resilience from Community Services report, in which community organisations from Queensland share how they are working to increase their financial sustainability. The strategies they employ include social enterprise,...

The Grantseeker Manual is a comprehensive toolkit prepared by Community Builders NSW. It is a starter kit to introduce you to the basics of grantseeking, designed to support small to medium sized NGOs that may not currently have the capacity or resources to undertake effective grant seeking...

The Womens Centre Cairns is a proudly feminist not-for-profit organisation that provides services to women and children at risk of domestic violence and homelessness. Drawing funding from the Department of Communities, Child Safety and Disability Services and Department of Housing and Public...

You have by now no doubt heard of the incredible success of the new game, Pokémon Go. And even if you haven't, you have probably noticed a marked increase in people roaming around parks, shopping centres and other public areas, intent on their smartphones.

The competitive tender process for the Queensland government's new Social Benefit Bonds program has recently been launched, and the Invitation for Expressions of Interest (EOI) documents are available via...

Homelessness is a problem too complex to be tackled by only the community services sector and government departments. It needs the combined efforts of the private, public and community sectors because a diverse range of people and organisations are better able to address the diverse and...